PUBLIC LAW 183—OCT. 20, 1951
remuneration, or it is reasonable to believe that such remuneration will be excluded from gross income under the provisions of section 116(a)(1) or (2), or", (c) EFFECTIVE DATES.—The amendment made by subsection (a) shall be applicable to taxable years beginning after December 31, 1950. The amendment made by subsection (b) shall be applicable with respect to wages paid on or after January 1, 1952.
Ante, p. 498.
SEC. 322. CAPITAL GAINS AND LOSSES. (a) TREATMENT or LONG-TERM CAPITAL GAINS AND LOSSES.— (1) AMENDMENT OF SECTION 23.—Section 23 (relating to deduc-
tions from gross income) is hereby amended by adding at the end thereof the following new subsection: "(ee) LONG-TEKM CAPITAL GAINS.—In the case of a taxpayer other than a corporation, the deduction for long-term capital gains provided in section 117(b). " (2) AMENDMENT OF SECTION 117 (b).—Section 117(b) (relating to treatment of long-term capital gains and losses) is hereby amended to read as follows: " (b) DEDUCTION FROM GROSS INCOME.—In the case of a taxpayer other than a corporation, if for any taxable year the net long-term capital gain exceeds the net short-term capital loss, 50 per centum of the amount of such excess shall be a deduction from gross income. I n the case of an estate or trust, the deduction shall be computed by excluding the portion (if any), of the ^ i n s for the taxable year from sales or exchanges of capita;l assets, which, under section 162(b) or (c), is includible by the income beneficiaries as gain derived from the sale or exchange of capital assets." (b) Ai/TERNATivE TAX.—Section 117(c)(2) (relating to alternative tax) is hereby amended to read as follows: "(2) OTHER TAXPAYERS.—If for any taxable year the net longterm capital gain of any taxpayer (other than a corporation) exceeds the net short-term capital loss, there shall be levied, collected, and paid, in lieu of the tax imposed by sections 11 and 12 (or, in the case of certain tax-exempt trusts, in lieu of the tax imposed by section 421), a tax determined as follows, if and only if such tax is less than the tax imposed by such sections: " (A) A partial tax shall first be computed upon the net income reduced by an amount equal to 50 per centum of such excess, at the rates and in the manner as if this subsection had not been enacted. " (B) There shall then be ascertained an amount equal to 25 per centum of the excess of the net long-term capital gain over the net short-term capital loss. In the case of any taxable year beginning after October 31, 1951, and before November 1, 1953, there shall be ascertained, in lieu of the amount computed under the preceding sentence, an amount equal to 26 per centum of the excess of the net long-term capital gain over the net short-term capital loss. (C) The total tax shall be the partial tax computed under subparagraph (A) plus the amount computed under subparagraph (B).^' (c) TECHNICAL AMENDMENTS.— (1) AMENDMENT OF SECTION 22 (n).—Section 22(n)
(relating to the definition of adjusted gross income) is hereby amended by striking out the word "and at the end of paragraph (5), by striking out the period at the end of paragraph (6) and inserting in lieu thereof "; and", and by inserting after paragraph (6) the following new paragraph: "(7) IX)NG-TERM CAPITAL GAINS.—The deduction allowed by section 23 (ee)."
53 Stat. 12. 26 U.S.C. §23. Ante, pp. 486, 486, 490, 491. PoH, p. 615.
S3 Stat. 61. 2 6 U.S.C. § 117(b).
53 Stat. 66. 22 U. S. G. § 162. 53 Stat. 61. 26 U.S.C. § 117 (c)
53 Stat. 5. 26 U.S.C.§§11, 12. Ante, pp. 459, 461, 480. 64 Stat. 948. 26 U.S.C.§421. Ante, p. 468. Post, p. 610.
68 Stat. 236. 26 U.S.C. 5 22 (n).